Category: Residential Mortgages
All applications will be subject to robust underwriting checks, including full assessment of credit score and additional credit commitments, to ensure the society continues to lend responsibly.
Both products come with a free standard valuation up to £999 and are for first-time buyers and home movers only.
In 2020, only 73% of first-time buyers were able to afford a deposit greater than £15,000, but in 2021 this number increased to 87%.
The launch of the MGS opens the door to a greater number of mortgage products suited to borrowers with smaller deposits, according to Davies.
Adam Forshaw, managing director of O’Neil Patient, said the scheme will mean people are more likely to be able to buy independently, and less likely to need a helping hand for their deposit.
Legal & General Home Finance’s current RIO option is available to the market at 3.55%, up to a maximum of 60% loan-to-value (LTV) and with a product fee of £599.
The range of products include 2 and 5-year fixes, which are available to single or joint applicants, with the same rates whether taken out direct or through a broker.
Mortgage lending at over 90% LTV has never returned to pre Global Financial Crisis levels, having reached 16% of all mortgages in 2007.
The average price of properties coming to market has reached a record high of £327,797, up 2.1% on a monthly basis, according to Rightmove.
From Tuesday 20 April 2021, people looking to buy a new home can apply for one of three products, which are fee free and include a free valuation.